BlueStone Appoints Axis, IIFL, and Kotak for Planned Initial Public Offering Next Year
BlueStone, the innovative jewellery startup, has made significant strides towards launching its initial public offering (IPO) expected to take place next year. The company has strategically appointed Axis Capital, IIFL Securities, and Kotak Mahindra Capital as bankers to manage this ambitious venture.
The planned IPO is anticipated to raise approximately $200-$250 million at a valuation ranging between $1-1.5 billion. BlueStone aims to file the necessary documentation later this year, marking a pivotal moment for the company and potentially making it the first of its kind among new-age jewellery startups to go public.
Earlier, in August, BlueStone successfully concluded a ₹900 crore pre-IPO funding round, which more than doubled its valuation to $970 million. This funding included a blend of primary and secondary transactions, with one of the early investors, Kalaari Capital, divesting some of its stake. Previously, there had been talks of BlueStone preparing for a ₹2,000 crore IPO.
BlueStone, under the corporate umbrella of BlueStone Jewellery and Lifestyle Pvt Ltd, competes in a bustling market alongside peers like Melorra, Giva, and CaratLane. The new-age jewellery sector in India has seen a surge in investor activities, buoyed by several successful funding rounds. Giva, for instance, recently completed a ₹255 crore funding endeavor, while Melorra was in acquisition talks with Senco Gold Ltd. Additionally, Titan acquired the remaining stakes in CaratLane, consolidating it as a wholly owned subsidiary.
This heightened investor interest reflects broader trends in Indian retail jewellery, driven by increasing disposable incomes and a burgeoning young middle-class demographic. Unlike conventional firms such as Malabar Gold & Diamonds and Kalyan Jewellers, these new-age companies are thriving as they attract this emerging market segment.
Established in 2011 by Gaurav Singh Kushwaha, Sudeep Nagar, and Ganesh Krishnan, BlueStone offers a comprehensive range of jewellery products, including bangles, bracelets, rings, earrings, chains, pendants, and nose pins. Initially operating through an online-only channel, BlueStone expanded its footprint by opening physical stores in 2018. Currently, it boasts over 200 stores across India and plans further expansions as hybrid shopping methods gain popularity. By localizing its production, design, and manufacturing processes, BlueStone maintains tighter cost controls.
In the fiscal year 2024, BlueStone reported a 65% increase in revenue, rising to ₹1,303.4 crore from ₹787.8 crore the previous year. Simultaneously, the company managed to reduce its losses by nearly 15%, narrowing them to ₹142.2 crore. Among its key investors are Accel, its largest institutional investor, along with Prosus, Peak XV Partners, Iron Pillar, and Steadview Capital.
The Indian retail jewellery market was estimated to be nearly $80 billion in FY24, with organized retail accounting for approximately 36-38% of this vast sector. The market includes both nationwide and regional companies. According to a report published in June, it is predicted that the market will achieve a 15-16% compounded annual growth rate, potentially reaching $145 billion by FY28. This growth is largely driven by enhanced experiences at organized retail outlets, increased disposable incomes, improved product offerings, and an optimized product mix catering to regular wear.
As BlueStone prepares for its IPO, the industry will be closely watching this milestone event, which could signify a turning point for jewellery startups in India looking to enter public markets.
